What do I need to open an instant access savings account?
You can usually open one of these accounts with just £1, so it’s a good way to get started Just remember you’ll need things like your ID and proof of address when you open your account – check with your bank or building society for their specific requirements.
So it’s a savings account instant access for everyone then? Well, not quite. The interest rates are no match for a more restrictive savings account so if you can afford to lock your savings away then you could get a better return. Also the rates on these accounts aren’t fixed so if the Bank of England base rate does drop the rate on this account could also decrease (on the plus side if it goes up so could your savings rate!)
You can also use your instant access savings account together with a locked in savings account. The biggest concern that we share when locking in funds is, what happens if I need that money soon? By putting aside some money in an instant access savings account initially, you can make sure you always have a certain amount that you can access at any time. Once you’ve got this, any more money you have to save can go into a higher interest rate account that locks away your funds so you can earn more on your savings.
To summarise, an instant access savings account is a solution for individuals looking to save money without committing their funds into a locked balance. Whilst you are compromising the interest rate that you will receive, being able to access your funds as and when you need will offer more comfort.
You can compare instant access savings accounts with us, assessing leading providers of savings accounts to find the best policy and interest rate available to you.